Coronavirus Uncertainties Steer Konecranes to Profit Warning
Finnish crane manufacturer Konecranes has issued a profit warning for 2020 due to demand outlook uncertainties resulting from the coronavirus pandemic.
The company said that many of its customers are limiting access to their premises, disabling the company from completing the installation of new equipment and performing service operations.
Konecranes added that its own operations were also impacted by the significant and increasing worldwide measures to contain the pandemic.
“Konecranes expects the pandemic to have an impact on demand for its products and services, particularly in the first half of the year, but as the situation is evolving quickly it is too early to make reasoned estimates that quantify this impact,” the company said.
Consequently, Konecranes suspended its financial guidance for full-year 2020.
Beyond the coronavirus, the crane manufacturer expects the adjusted EBITA margin to be affected by an estimated cost overrun of EUR 18 million related to the execution of a port crane project in the US. This charge will be booked in Q1 2020.
In its previous guidance for 2020, Konecranes said that it was expecting sales in full-year 2020 to increase 7-10% year-on-year, including MHE-Demag. The adjusted EBITA margin was set to improve in full-year 2020 compared to full-year 2019.
In full-year 2019, the group’s sales were EUR 3.3 billion and the adjusted EBITA margin was 8.3%.